NVM Private Equity (NVM) has exited from Kitwave Wholesale Group, a delivered wholesaler with a wide product range including confectionery, soft drinks, ice-cream, alcohol and tobacco. The company has transformed itself from being a regional confectionery business to a national wholesaler through 11 acquisitions since 2006. The sale represents a gross money multiple of 3.0 times on NVM’s original investment.
Kitwave, founded by CEO Paul Young in 1988, has a reputation for excellence in service quality, product availability and customer relationships and has laid a strong foundation for the future. As well as now having nationwide delivery capability, the group has expanded to offer frozen, ambient and own label products to the independent retail, vending and food service sectors. Since NVM’s investment the group has acquired Anderson Wholesale, Automatic Retailing, Teatime Tasties, Eden Farm, Squirrels UK and most recently in July 2015 Hulleys Frozen Foods.
In 2014 Kitwave broke into The Sunday Times ‘Top Track 250’ and was invited to join the London Stock Exchange ‘Elite’ scheme for fast growing companies. More recently the Group has entered the prestigious Grocer’s ‘Big 30’ ranking for the first time as the 15th largest UK based wholesaler.
Paul Young, CEO of Kitwave said: “This deal marks the start of the next chapter of our growth story, which sees revenues on track to reach in excess of £260m in the current financial year. During the last five years, NVM has been a major support and the capital and faith in our strategic vision has continuously helped to ensure we have developed an attractive platform to continue to grow.”
Mauro Biagioni of NVM Private Equity said: “Kitwave has been a very successful investment for NVM and its funds and is now well positioned for its next phase of growth. It has been a pleasure working with Paul, David and the wider management team, and we wish them every success for the future.”
Rod Wilkinson of KPMG, who leads the firm’s Corporate Finance practice in Newcastle, said: “This funding deal gives NVM Private Equity a strong exit, delivers Kitwave with the platform to continue its growth strategy and offers Pricoa and Allstate an investment in a business with a strong track record and a pipeline of planned acquisitions.”
NOTES TO EDITORS
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NVM Private Equity is independently owned with over 30 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £270 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities of between £2 million and £12 million in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. www.nvm.co.uk
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